Through the hard work of my excellent attorneys, we were able to recover approximately $2.25 million from FXCM to return to the investors.
Dallas, Texas (PRWEB) July 18, 2016
Scheef & Stone LLP is pleased to announce a $2.25 million settlement of claims brought by a federal court appointed Receiver against Forex Capital Markets LLC. The aiding and abetting securities fraud claims were filed against FXCM in the 429th District Court of Collin County, Texas in Cause No. 429-75-2014. The claims alleged that Forex aided and abetted Kevin White, a Plano, Texas man earlier convicted of fraud in operating the Revelation Forex Fund, a $7 million Ponzi scheme. Kelly Crawford, a co-founding partner with Scheef & Stone, was appointed as Receiver for the Revelation Forex Fund by the United States District Court for the Eastern District of Texas in Cases Nos. 4:13-cv-383 and 382 brought by the Securities and Exchange Commission and U.S. Commodities Futures Trading Commission against White.
Court records indicate that more than two years ago, Crawford filed claims against FXCM for its alleged role as the broker who opened and serviced the Revelation Forex Fund account for White.
Prior to the settlement, FXCM made motion to have the case arbitrated in New York. FXCM argued Crawford, as the Receiver, had stepped into the shoes of its customer, the Revelation Forex Fund, and was required to arbitrate the claims in New York. The Collin County District Court ruled against FXCM. The company appealed the decision to the Dallas Court of Appeals. The Dallas Court of Appeals agreed that the Receiver was not bound by the arbitration agreement of Revelation Forex Fund. FXCM appealed the appellate decision to the Texas Supreme Court, but it declined to hear the case.
After losing the battle for venue, FXCM paid the Receiver $2.25 million in settlement of the claims. As a result of this settlement and other recoveries in the receivership, Crawford will be returning more than 78% of the misappropriated funds to the investors. “Through the hard work of my excellent attorneys, we were able to recover substantial funds from FXCM to return to the investors,” Crawford said.
In the battles to determine venue, Crawford was represented by Mitch Little and Charlene Koonce, Scheef & Stone partners with significant experience in federal court receiverships. “This was a hard fought battle that lasted for more than two and a half years,” Little said.
“The Dallas Court of Appeals’ opinion requiring FXCM to go to trial in Collin County was a pivotal moment in allowing for a settlement in the case,” Koonce said.
Former U.S. Magistrate Jeff Kaplan, now with JAMS, served as the mediator in the dispute.
Scheef & Stone, LLP provides solid counsel to its valued clients by forging innovative legal solutions to build lasting relationships. From its offices in Dallas and Frisco, members of the law firm hold themselves to the highest standards, and embrace the art of going above and beyond the extra mile for their clients. These values have led to strategic growth, bringing its attorney count to approximately 60 lawyers practicing in a full-service transactional and litigation firm with services including immigration, corporate, cybersecurity, mergers and acquisitions, real estate, tax, construction law, banking, intellectual property, healthcare, litigation and employment law.